05 define enterprise structures

Partner Boot Camp - Fusion
HCM Global HR
Define Enterprise Structures
Instructor Guide
August 8, 2013

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CONTENTS
Lesson 1: Define Enterprise Structures .......................................1
Objectives.............................................................................................. 1
The Enterprise Structure Configurator (ESC)................................................ 2
ESC Overview......................................................................................... 3
ESC Benefits .......................................................................................... 4
Instructor Note: Using the ESC.................................................................. 5
Establishing Enterprise Structures Using the ESC.......................................... 6
Overview............................................................................................. 6
Enterprise Configuration Using ESC .......................................................... 7
Manage Enterprise ................................................................................ 8
Enterprise Structure Components ............................................................ 9
Enterprise and Divisions....................................................................... 10
Creating Legal Entities Using the ESC ..................................................... 12
Instructor Note: Creating Legal Entities Using the ESC .............................. 13
Instructor Note: Enterprise Configuration Using the ESC ............................ 14
Creating Business Units Using the ESC: Key Concepts ............................... 15
Instructor Note: Creating Business Units Using the ESC............................. 17
Creating Reference Data Sets Using the ESC............................................ 18
Common Set ...................................................................................... 19
Reviewing the Configuration ................................................................. 20
Viewing the Technical Summary Report .................................................. 21
Loading the Configuration and Rolling Back ............................................. 22
Instructor Note: Activity Timing............................................................. 23
Activity Introduction: Establishing Enterprise Structures ............................ 24
Activity Solution: Establishing Enterprise Structures................................ 26
Establish Enterprise Structures using the ESC Review Questions ................. 33
Review Question 1 ............................................................................ 34
Review Question 2 ............................................................................ 35
Review Question 3 ............................................................................ 36
Questions and Answers...................................................................... 37
Lesson Highlights .................................................................................. 38
Lesson Highlight Details ....................................................................... 39

Lesson 1: Define Enterprise Structures
Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1
Objectives
After completing this lesson, you should be able to:
 Establish the enterprise structure using the ESC

2 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
The Enterprise Structure Configurator (ESC)
This graphic illustrates the process to configure your enterprise using the Enterprise
Structures Configurator (ESC) .
After you define your enterprise, job and position structures, you can review them,
make any necessary changes, and then load the final configuration.

ESC Overview
The ESC is an interview-based tool that guides you through the configuration of your
enterprise structures. Use the ESC as part of your set up to define the organization
structures and job and position structures of the enterprise.
How do I access the ESC?
In the Setup and Maintenance work area, select the Establish Enterprise Structures
task under the Define Initial Configuration task list:

ESC Benefits
Using the ESC, you can:
 Create all the organizational structures at one time.
 Create multiple configurations to test multiple scenarios.
 Review the enterprise configuration prior to loading it.
 Rollback an enterprise configuration after loading it.

Instructor Note: Using the ESC
The students may want to know what happens if they do not use the ESC to configure
their enterprise structures. If you do not use the ESC, then you must set up your
enterprise structures using the individual tasks that correspond to each enterprise
component. This also means that you cannot set up multiple configurations and
compare different scenarios.
Students may want to know if they have locations already set up, can they see them in
the ESC. The answer to this question is No.

Establishing Enterprise Structures Using the ESC
Overview
In this section, you will learn how to:
 Describe the organization components within an enterprise
 Set up multiple enterprise configurations
 Review the enterprise configuration
 Load the enterprise configuration

Enterprise Configuration Using ESC
This graphic displays all the components you set up in ESC and the order in which you
perform the tasks.

Manage Enterprise
The following screenshot is the Manage Enterprise page within the Establish Enterprise
Structures task in the Enterprise Structures Guided Flow. You can see the 7 train stops
that guide you through the high-level organizational setup:

Enterprise Structure Components
This graphic is an example of an enterprise structure with two divisions operating in four
countries with a combination of sales and marketing departments.
 Enterprise: For each configuration in ESC, you define the high-level structures
within the scope of an enterprise. It consists of legal entities under common
control and management.
 Division: A division refers to a business or product oriented subdivision.
Divisions are used in HCM to define the management organization hierarchy,
using the generic organization hierarchy. This hierarchy can be used to create
organization based security profiles.
 Legal Entity: Represents the legal employer and/or payroll statutory unit (PSU).
A legal employer is a legal entity that employs people. A PSU is a legal entity
responsible for the payment of its workers and can be used to report tax and
social insurance.
 Legislative Data Group (LDG): (not shown in the graphic) LDGs are created
automatically in ESC, with one LDG created for each location country identified in
the interview. You can see them in the technical summary report. Use LDGs to
partition payroll data in large organizations with multiple legal entities.
 Departments: A department is an organization to which you assign workers.
Note: The ESC does not create departments, you create departments using the
Manage Departments task.

Enterprise and Divisions
You use the guided flow within the Establish Enterprise Structures task to enter basic
information about your enterprise, such as the primary industry and the location of your
headquarters. You then create divisions, legal entities, business units, and reference
data sets.
When implementing Oracle Fusion Applications you operate within the context of an
enterprise that has already been created in the application for you. This is either a
predefined enterprise or an enterprise that has been created in the application by a
system administrator.
A division refers to a business oriented subdivision within an enterprise, in which each
division organizes itself differently to deliver products and services or address different
markets. A division can operate in one or more countries, and can be comprised of
many companies or parts of different companies that are represented by business units.
The following figure illustrates the structure of InFusion Corporation after adding a new
division and other relevant organizations. The new division exists within the current
enterprise structure, but you can manage the costs and reporting separately from the
InFusion Corporation.

.

Creating Legal Entities Using the ESC
In ESC you have three options to create your legal entities:
 Create legal entities automatically: based on the countries in which divisions of
your business operate.
 Upload legal entities from a spreadsheet: if you have a list of legal entities
already defined for your enterprise.
 Create legal entities manually: add individual legal entities in the interview.
This graphic illustrates the InFusion Corporation with two divisions. The InFusion
Lighting division operates in the US and Japan, and the InFusion Security division
operates in the UK and India. Using the Map Divisions by Country page in the ESC, you
can create a legal entity for each country. Therefore the ESC creates four legal entities
for the InFusion Corporation:
 InFusion Lighting Japan LE
 InFusion Lighting US LE
 InFusion Security UK LE
 InFusion Security India LE

Instructor Note: Creating Legal Entities Using the ESC
Note: The list of countries available (in the new window after you select to generate the
legal entities automatically) is based on the location information already entered in the
interview. You can also add additional countries.

Instructor Note: Enterprise Configuration Using the
ESC
Use the graphic to explain how the ESC guides you through each page to set up the
enterprise structures. The ESC is different from the individual tasks as it includes all the
relevant tasks together. As the ESC is based on best practices it enables you to
complete your configuration by thinking about how you run your business, where your
company operates and employs people, and how you manage your employees. You
can configure the enterprise to reflect your organization structure.

Creating Business Units Using the ESC: Key
Concepts
 Used throughout Fusion Applications for management reporting, processing of
transactions, and security of transactional data.
 Can create business units manually or automatically.
 Can automatically create business units at many different levels
Considerations for selecting how to create your business units and which level to
select:
 Do you use or ever plan to use Oracle Fusion Financials? If yes, then select the
legal entity level to ensure financial transactions are processed correctly.
 Do you need business units at the functional level to represent, for example,
Sales, Consulting, or Product Development?
 Do you need business units at the country level to represent the countries in
which you operate?
In the following diagram, InFusion decides to create business units using the country
and business function level. Therefore, they created the following business units:
 Sales_Japan
 Marketing_Japan
 Sales_US
 Sales_UK
 Marketing_India
 Sales_India

Instructor Note: Creating Business Units Using the
ESC
Include reference to curriculum on business units.
Considerations for business units:
 Do you need business units at the functional level to represent sales, consulting,
or product development? Select the Business Function level.
 Do you need business units at the country level to represent the countries in
which you operate? Select the Country level.
Note: Inform the students that if they choose to create their business units manually,
then the ESC does not automatically create the corresponding reference data sets.
They must also create the reference data sets manually.

Creating Reference Data Sets Using the ESC
The ESC uses the business unit information to create the required reference data sets.
For example, if you create the business units at the division level, then the ESC creates
one reference data set for each division. If you create business units automatically, then
the ESC automatically creates reference data sets as well. The reference data set
provides the business unit with information, which is used at the transaction level. The
application uses the business unit you associate to the person to determine certain set-
enabled information, such as grades, departments, jobs, and locations that are available
for the person.
Managing Business Unit Set Assignment
You can change the default reference data set, which is assigned to a business unit for
all reference data groups, such as grades, locations, departments, and jobs. You can
override the default reference data set for any reference data group. For example, in the
below screenshot, Fusion Security SET is the default reference data set for the India
Fusion Security business unit. You can override the set assignment so that grades are
assigned to the default Fusion Security SET, departments are assigned to another set,
and jobs are assigned to yet another set.

Common Set
The Common Set is a predefined set that enables you to share reference data across
business units.

Reviewing the Configuration
The last step in establishing the enterprise structures using the ESC, is reviewing the
resulting configuration. In the review results, you can view all the enterprise structures
that will be created, and the management reporting structure that will be created upon
loading the configuration.

Viewing the Technical Summary Report
In the Manage Enterprise Configuration page, click Review Results for your enterprise
configuration, to view and download the technical summary report:
The technical summary report lists the enterprise and job structures, displays the
management reporting structure, and in addition displays the following:
 Legislative data groups (LDGs) - the application defines one legislative data
group for each country identified in the configuration.
 Name of the legislative data group that will be assigned to the payroll statutory
unit generated for each legal entity.

Loading the Configuration and Rolling Back
You can load only one enterprise configuration. When you load a configuration, the
application creates the divisions, legal entities, business units, and so on. After you load
the configuration, you then use individual tasks to edit, add, and delete enterprise
structures.
Rolling Back a Configuration
The ESC provides the ability to roll back an enterprise configuration in the following
circumstances:
 You can roll back an enterprise configuration manually after loading it, for
example, because you decide you do not want to use it. Clicking the Roll Back
Configuration button on the Manage Enterprise Configuration page rolls back
any enterprise structures that were created as a part of loading the configuration.
 If an error occurs during the process of loading the configuration, then the
application automatically rolls back any enterprise structures that were created
before the error was encountered.

Instructor Note: Activity Timing
The activities in this section provide the students with information on how to define an
enterprise configuration. However, only one configuration can be loaded in the
environment. Each student can perform the tasks within the Define Initial Configuration
task list, except the Load Enterprise Configuration task.
Approximate Activity Timing: 30 minutes
.

Activity Introduction: Establishing Enterprise
Structures
Background
Use this activity to define the enterprise structures and their associated locations using
the Establishing Enterprise Structures task in the Enterprise Structures guided flow.
The InFusion Corporation is based in the United States and has two divisions: InFusion
Lighting and InFusion Security. It is an international company with business operations
in United States and United Kingdom.
Requirements
 Use the bold text for the object names, replacing the XX with your initials, as
indicated by your instructor
 You must have access to Oracle Fusion Application InFusion database or
comparable training or test instance at your site, on which to complete this
practice.
Scope
1. Define the enterprise and divisions using the following information:

2. Define the legal entities and business units using the following information:
3. Review and assign the reference data sets.
4. Save the enterprise configuration.
5. Review the enterprise configuration.

Activity Solution: Establishing Enterprise Structures
Sign in as hcm_impl or hcm_impl1.
Start Here
Setup and Maintenance work area, Implementation Project: XX Workforce
Deployment page
These task lists are expanded: Workforce Deployment - Define Common
Applications Configuration for Human Capital Management - Define Enterprise
Structures for Human Capital Management - Define Initial Configuration.
1. In the Establish Enterprise Structures row, click Go to Task.
2. On the Manage Enterprise Configuration page, click Create.
Location: Create Enterprise Configuration dialox box
3. In the Name field, enter xx Enterprise Configuration.
4. Click OK.
Location: Establish Enterprise Structures: Manage Enterprise page
Information
Use the Establish Enterprise Structures: Manage Enterprise page to enter
basic information such as the primary industry and the location of your
headquarters.
5. Retain the value InFusion Corporation in the Enterprise Name field.
6. In the Short Name field, enter XX Corp.
7. In the Primary Industry field, select Finance and Insurance.
8. In the Headquarters Country field, select United States.
9. In the Legal Information section, in the Legal Name field, enter xx InFusion
Corporation LE.
10.In the Legal Entity Identifier field, enter US0001.
11.In the Legal Entity Registration Number field, enter US0002.

12.In the Legal Reporting Unit Registration Number field, enter US0003.
13.In the Legal Address field, select Create.
Location: Create Location dialog box
14.In the Name field, enter xx Location US HQ.
15.In the Address Line 1 field, enter Redwood Shores.
16.Click OK.
Location: Establish Enterprise Structures: Manage Enterprise page
17.In the Enterprise Configuration Requirements section, select Yes. I have
other legal entities to set up.
Information
InFusion Corporation is an international company with business operations in
United States and United Kingdom. You must define legal entities for the
countries in which InFusion Corporation operates.
18.Click Next.
Location: Establish Enterprise Structures: Manage Divisions page
Information
Create the two divisions in InFusion Corporation: InFusion Lighting and
InFusion Security. Each division operates in more than one country and
delivers different products and services.
19.Click the Add Row icon.
20.In the Name field, enter xx InFusion Lighting.
21.In the Country field, select United States.
22.In the Location field, select xx Location US HQ.
24.In the Name field, enter xx InFusion Security.
25.In the Country field, select United Kingdom.

26.In the Location field, select Create to define the UK location for the xx InFusion
Security division.
Location: Create Location dialog box
27.In the Name field, enter xx Location UK HQ.
28.In the Address Line 1 field, enter Oracle Parkway.
29.In the City or Town field, enter Reading.
30.Click OK.
Location: Establish Enterprise Structures: Manage Divisions page
31.In the Location field, select xx Location UK HQ.
32.Click Save.
33.On the Confirmation dialog box, click OK.
34.Click Next.
Location: Establish Enterprise Structures: Manage Legal Entities page
Information
Create legal entities for the InFusion Lighting and InFusion Security
divisions.
36.In the Country field, select United States.
37.In the Name field, enter xx InFusion Lighting US LE.
38.In the Division field, select xx InFusion Lighting.
39.In the Legal Entity Identifier field, enter US0004.
40.In the Legal Entity Registration Number field, enter US0005.
41.In the Legal Reporting Unit Registration Number field, enter US0006.
42.In the Legal Address field, select xx Location US HQ.

44.Follow steps 1 to 10 using the following data, to create the legal entity for
InFusion Security, UK:
Country: United Kingdom
Name: xx InFusion Security UK LE
Division: xx InFusion Security
Legal Entity Identifier: UK0001
Legal Entity Registration Number: UK0002
Legal Reporting Unit Registration Number: UK0003
Legal Address: xx Location UK HQ
45.Click Save.
47.Click Next.
Location: Establish Enterprise Structures: Create Business Units page
48.Click Select All.
Information
You select to automatically generate business units at the legal entity level
because InFusion Corporation requires business units at the country level to
represent the countries in which they operate.
49.Click Next.
Location: Establish Enterprise Structures: Manage Business Units page
Information
The ESC has created a business unit for each legal entity in xx InFusion
Corporation. You can use the Manage Business Units page to review the
business units, and define a location for each business unit.
50.Click Next.
Location: Establish Enterprise Structures: Reference Data Sets page
Information
The ESC has automatically created a reference data set for each business unit.
51.Click Next.

Location: Manage Business Unit Set Assignment page
Information
Use the page to define the default reference data set for each business unit.
Note: The reference data set provides the business unit with information, which
is used at the transaction level.
52.For the xx InFusion Security UK LE BU, in the Default Reference Data Set field,
select xx InFusion Security UK LE SET.
53.For the xx InFusion Lighting US LE BU, in the Default Reference Data Set field,
select xx InFusion Lighting US LE SET.
54.For the xx InFusion Corporation LE BU, in the Default Reference Data Set field,
select Common Set.
55.Click Next.
Location: Manage Location Reference Set page
Information
Use the page to assign reference data sets to your locations.
56.For xx Location UK HQ, in the Reference Data Set field, select xx InFusion
Security UK LE SET.
57.For xx Location US HQ, in the Reference Data Set field, select xx InFusion
Lighting US LE SET.
58.Click Save.
60.Click Next.
Location: Establish Enterprise Structures: Review Results page
Information
Use the page to review the enterprise structures created.
Note: The Management Reporting Structure tab enables you to view the
organization structures in a hierarchy.
61.Click the Management Reporting Structure tab.

62.Review the organization structures that you have created.
63.Click Submit.
Location: Manage Enterprise Configuration page
64.In the XX Enterprise Configuration row, click Review Results to download a
technical summary of the enterprise configuration.
Location: Review Enterprise Configuration page
65.Click Download Technical Summary Report to view and download the PDF
report.
66.Click Done.
Location: Manage Enterprise Configuration page
Information
After you complete the task, navigate back to the task list within your
implementation project to mark the task as complete.
67.Click Save and Close.
Location: Implementation Project: XX Workforce Deployment page
68.Click Done.
Location: Setup and Maintenance work area, Overview page
69.Click the Implementation Projects tab.
70.Click XX Workforce Deployment.
71.Select Workforce Deployment - Define Common Applications Configuration
for Human Capital Management - Define Enterprise Structures for Human
Capital Management - Define Initial Configuration.
72.In the Establish Enterprise Structures row, click the Status icon.
Location: Edit Status dialog box
73.In the Status field, select Completed.
74.Click Save and Close.

Location: Implementation Project: XX Workforce Deployment page
75.Click Done.
At this point you should have defined and reviewed the high-level organization
structures.

Establish Enterprise Structures using the ESC Review
Questions

Review Question 1
You can create multiple configurations to compare different scenarios.
1. True
2. False

Review Question 2
Name three organization components that you can create using the ESC.

Review Question 3
You can roll back an enterprise configuration once you load the configuration.
1. True
2. False

Questions and Answers
1. You can create multiple configurations to compare different scenarios.
True
2. Name three organization components that you can create using the ESC.
Enterprise, division, legal entity, business unit, reference data set.
3. You can roll back an enterprise configuration once you load the configuration.
True

Lesson Highlights
In this lesson, you should have learned to:
 Describe what ESC is and how to use it to configure your enterprise

Lesson Highlight Details
Enterprise Structures Configurator
The Enterprise Structures Configurator (ESC), also known as the HCM Configuration
Workbench, is an interview-based tool that guides you through the configuration of your
enterprise structures. Use the ESC as part of your set up to define the organization
structures and job and position structures of the enterprise.
Establishing Enterprise Structures Using ESC
You use the guided flow within the Establish Enterprise Structures task to enter basic
information about your enterprise, such as the primary industry and the location of your
headquarters. You then create divisions, legal entities, business units, and reference
data sets.
Establishing Job and Position Structures Using ESC
You use a guided process to determine if you need positions as well as jobs in your
enterprise, s et up additional attributes and contextual attributes for jobs and positions.
The ESC uses the primary industry you selected in the Establish Enterprise Structures
task to suggest a recommended approach for using jobs or jobs and positions. You can
use the recommendation or answer a series of questions about how you manage
people.
Defining Legal Jurisdictions, Legal Authorities, Legal Entities and Legal
Reporting Units for HCM
You are required to register your legal entities with legal authorities in the jurisdictions
where you conduct business, as required by local business requirements or other
relevant laws.
 Define jurisdictions and related legal authorities to support multiple legal entity
registrations, which are used by Oracle Fusion Tax and Oracle Fusion Payroll.
 Define a legal entity for each registered company or other entity recognized in
law for which you want to record assets, liabilities, expenses and income, pay
transaction taxes, or perform intercompany trading.
 Create and register legal reporting units to support local reporting requirements.
When you first create a legal entity, the Oracle Fusion Legal Entity Configurator
automatically creates one legal reporting unit for that legal entity with a
registration.

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